Digital assets are one of the most popular holding classes in the world. Many investors are rushing to add them to their portfolios to diversify their finances. Cyber money hasn’t been around for very long compared to traditional asset classes such as stocks, bonds, or precious metals. Yet, it has risen to prominence in only a fraction of the time. This is due to the hype created around crypto, and the endorsement by celebrities or other famous public figures. Plus, the many possible uses of the blockchain. Since the system is entirely decentralized, it is resistant to censorship. This makes it a potential window into the world of decentralized financial services.
Exchanges such as Binance have recently noticed increased investor engagement, with users looking to buy Bitcoin in increasing numbers. This comes in the context of higher prices starting at the beginning of 2023, following the prolonged slump that affected the market during the better part of 2022. Over the course of the last year, investors lost considerable amounts of capital, with many considering whether or not they should drop investing altogether. However, for those that decided to stick around, it seems like investing will ultimately pay off, particularly as cryptocurrencies are branching out to include several different market niches.
One of them is football, one of the most popular sports in the world, with the largest number of fans and significant engagement levels from people all over the world. It might seem a bit peculiar, especially considering the fact that football is played physically, while cyber money exists solely in the digital sphere. How can these two seemingly incompatible areas collide and yield concrete results?
Tokens
Blockchain tokens have become particularly famous among fans worldwide as special, unique items. Football clubs have created significant revenue by creating fan tokens, with estimates placing the amount at nearly $400 million. Most tokens have been similar to cryptocurrencies, items that could be bought or sold and whose overall value largely depended on the available supply and demand.
However, some other clubs also put forward collectibles such as NFTs. The tokens believed to have rendered the highest amount of value are those belonging to Lazio, but Porto and Manchester City have also been popular choices and generated high sales. Nonetheless, some have called into question the sustainability of the fan tokens.
Cryptocurrencies are traditionally considered volatile assets, with the ones that are small and lesser known being subjected to more fluctuations than those already well-established on the market. Many have deemed the movements to be a bid for short-term profits. Nonetheless, users have disputed these claims. Many attributed them to the generally negative and stereotypical claims typically associated with cyber money. They have claimed that most investors hold just a few tokens. There’s no substantiated case for those claiming the fans engage in dangerous speculation.
Faster payments
One of the most important aspects of cryptocurrencies remains their ability to provide users with significantly faster payments compared to traditional forms of remuneration. While in the case of conventional finances, it can take up to a few days for a fee to be fully processed, depending on the day and time, as well as the geolocation, cryptocurrency transfers only take a few minutes at the most. They operate twenty-four hours a day, seven days a week throughout the year.
The crypto market could provide football fans with a venue to purchase tickets, as well as merchandise. Clubs could also avoid volatility. They do this by settling the coins in the local fiat currency as a means to bypass some of the volatility. These changes have the potential to attract a more significant number of clients, as many sports fans are also cryptocurrency traders. And they would like to have a way to spend their digital money while showing support for their favorite team.
This modernizing plan would also show that the football world is well-equipped to handle new challenges. Plus it’s open to change and the introduction of new technologies.
Sponsorship
Sponsorship banners during football games are a sight that all players and fans are familiar with. Cryptocurrencies have become an increasingly popular sight during games as well. Some expressed doubts about whether the ads ultimately managed to encourage more people to involve themselves in the world of digital finance or not.
Over the past year, cryptocurrencies navigated a challenging period, with values plummeting by over 60% compared to their previous values. During the days of a bear market, people generally lose all interest in investing in cryptocurrencies. There’s not much that marketing can usually do in such a situation. However, some exchanges have struggled quite a lot to maintain the spike in activity.
In December 2021, a Singapore-based crypto exchange acquired the rights to rename the Los Angeles arena. This was previously known as Staples Center. According to analysts, this has caused a momentary spike in trading activity. The number of active addresses rose to nearly 10,000 in the following days. This was an increase almost five times larger than the previous figures. However, this change was short-lived, as the number of active addresses sank soon enough. And, the crypto winter resumed its course.
Balancing Act
As for Binance, the world’s largest cryptocurrency exchange, they keep high-profile sponsorships to a minimum. The exchange has sponsored several Brazilian football teams and the African Cup of Nations. They are more low-profile ventures than supporting large and extremely popular clubs. At the time, CEO Changpeng Zhao said that it had been complicated to refuse Super Bowl advertisements and deals, as well as naming rights. But, this meant the exchange could offer hiring for a few thousand positions within the business, including remote jobs for employees from all over the world.
Cryptocurrencies have ushered in a new step for the financial sector. They make payments more efficient and accessible. Plus, they ensure that its systems are relatively easy to familiarize with regardless of whether you’re tech-savvy or not. The blockchain can also provide people with unique experiences, tokens, and several different features. For fans, this means more opportunities to enjoy their hobbies even more.
